Preparation for Loan Review System Go-Live on May 15th

There is less than one week remaining before the implementation of the Federal Housing Administration’s Loan Review System (LRS). When LRS goes live on May 15, lenders will use the system for all new post-endorsement loan reviews and other quality control functions for Single Family Title II mortgages (which includes Home Equity Conversion Mortgages). During … more Preparation for Loan Review System Go-Live on May 15th

HUD PD&R Publication Examines HECMs

The latest issue of Cityscape, published by HUD’s Office of Policy Development and Research, is a double issue titled “Home Equity Conversion Mortgages and Transforming Communities” that includes articles on reverse mortgage collateral, tax deferral programs, reverse mortgage motivations and outcomes and analysis of the Japanese reverse mortgage market. Guest Editor William Reid summarized the … more HUD PD&R Publication Examines HECMs

Helping Delinquent HECM Borrowers in IL and CA

The Illinois Housing Development Authority (IHDA) launched the Reverse Mortgage Assistance Program last week to help HECM borrowers in the Prairie State who are in technical default for not paying their property taxes and homeowners insurance policies. The IHDA offers up to $35,000 to reinstate a homeowner’s delinquent property expenses and pay future taxes and … more Helping Delinquent HECM Borrowers in IL and CA

Start Preparing for May 15 LRS Implementation Date

The Federal Housing Administration has scheduled a third webinar for the afternoon of April 26 to help mortgagees prepare for the May 15 implementation date for the Loan Review System (LRS), as announced in Mortgagee Letter 2017-08. NEW! Live Webinar 3 – Loan Review System (LRS): Lender Monitoring, Reporting, and Other Functions, April 26, 2017, … more Start Preparing for May 15 LRS Implementation Date

Changes Made to CHUMS

This morning, the Department of Housing and Urban Development made the following changes to its Computerized Home Underwriting Management System (CHUMS): CMCR-F17-2017-00020-Modified the HECM Financial Assessment Update screen to require the “Family Size” value to be two (2) when the “Non-Borrowing Spouse Income” compensating factor is selected. In addition, modified the HECM Financial Assessment Update … more Changes Made to CHUMS

FHA’s Loan Review System to Go Live on May 15

The Federal Housing Administration announced today in Mortgagee Letter 2017-08 that the implementation date for its Loan Review System will be May 15, 2017. LRS will be used to manage Title II Single Family Loan Reviews, Title II Single Family Mortgagee Monitoring Reviews, and Mortgagee self-reporting of fraud, misrepresentation and other material findings. The HECM … more FHA’s Loan Review System to Go Live on May 15

Financial Assessment Works

Financial Assessment is working. FHA’s new policy of requiring financial assessment (“FA”) of the borrower’s ability to pay has cut tax and insurance default by two-thirds and serious defaults almost in half, according to an analysis by New View Advisors. FHA’s objective for the new Financial Assessment regulations was to reduce the persistent defaults, especially … more Financial Assessment Works

Webcast Video: Using a Reverse Mortgage to Buy a Home

Last week’s webcast on HECM for Purchase coordinated by NRMLA, and hosted by the National Association of REALTORS®, can be downloaded and shared with your Realtor friends. NRMLA collaborated with NAR to develop a webcast for Realtors that featured Scott Trembley, CEO of The Trembley Group, a real estate firm based in Myrtle Beach, S.C., … more Webcast Video: Using a Reverse Mortgage to Buy a Home